All Biases

Loss Aversion

Losses hurt roughly twice as much as equivalent gains feel good. Losing $100 stings more than finding $100 pleases. Add equal amounts to both sides—watch the psychological scale tip dramatically toward loss.

Add equal weights to both sides. The amounts are identical, but losses feel 2x heavier psychologically.

The scale is balanced. Add equal amounts to both sides to see loss aversion in action.